14. Dealing with third parties for the purpose of the SWF’s operational management should be based on economic and financial grounds, and follow clear rules and procedures.
In 2021, the Public Council of the Fund was formed as an advisory body to represent the interests of civil society and take into account the opinion of the public in the discussion and decision-making, increasing accountability and transparency of activities of the Fund and Portfolio Companies.
Tasks of the Public Council:
Representing the interests of civil society
Developing constructive interaction with civil society
Monitoring the implementation of the Fund’s development strategies and plans
Submitting recommendations on improving the Fund’s activities
The Fund continues to work on the development of the procurement model. In March 2022, the Board of Directors of the Fund approved a new Procurement Procedure aimed at increasing the transparency of procurement of the Fund’s organizations, removing barriers to business and supporting domestic entrepreneurs without violating the principles of membership of the Republic of Kazakhstan in international organizations.
As part of ensuring the digitalization of the procurement process in order to simplify and streamline procurement procedures, work is carried out to increase systematically the share of procurement of goods and materials through an electronic store.
There is also an electronic procurement information system, which is a single portal for companies belonging to the Fund group, in which a full cycle is performed from planning the need for goods, works and services, further procurement, conclusion and execution of contracts, ending with the delivery of goods to the warehouse.
The procurement system of the Fund’s Group guarantees transparency of procedures, equal conditions of competition, fair partnership, reliability of suppliers and full compliance by all parties with relevant standards.
Prequalification is the process of evaluating potential suppliers with qualification requirements for acquired goods, works, and services.
Prequalification contributes to the development of the procurement system, development of quality and raising the level of competitiveness of domestic entrepreneurs and production in general.
Since the beginning of 2021, the Fund has put into effect a new model of prequalification (PKO – 2.0), which was developed in accordance with the global principles of qualification selection of potential suppliers.
The new PKO – 2.0 model serves to assess objectively the level of potential suppliers before procurement, both in terms of their level of financial stability, production capabilities, and existing experience as a supplier. The PKO procedure makes it possible to increase not only the efficiency of procurement, but also transparency, as well as optimize the timing of procurement for both customers and suppliers.
By the end of 2021, 23 categories were developed jointly with the Fund’s PC, while 71 potential suppliers were included in the Register of Qualified potential Suppliers. At the same time, the new PKO-2.0 model allowed to achieve the following indicators:
- single-source procurement has been reduced within the framework of the prequalification, the share of failed procurmeent has decreased to 1%;
- the level of satisfaction with the prequalification process among potential suppliers was 98.3%.
- as part of the PKO 2.0 process, goods, works and services worth over USD 360 mln were purchased from domestic entrepreneurs in 2021.
During 2021, a number of amendments were introduced to the Fund’s Procurement Standard (it details the Procurement Procedure, hereinafter - the Standard), which were approved by the Management Board and aimed at improving the procurement process of the Fund companies and supporting domestic commodity producers.
• extension of the validity period of the standard for making payments to domestic producers within 5 working days before December 31, 2021;
• optimization of the procedure for forming the Register of Commodity Producers of the Fund and providing the opportunity to participate in the procurement of commodity producers of goods similar to those purchased;
• simplification of the process of forming and maintaining the register of goods producers of the Fund. There is no need for potential suppliers to provide a number of constituent documents;
• optimization of dumping thresholds for construction and assembly works and goods (8 and 15 percent, respectively).